PSA International agrees to buy new container port in Lianyungang Port, China

A subsidiary of PSA International has agreed to acquire stakes in a new container terminal company in Lianyungang Port in Jiangsu Province, China.

The joint venture between PSA and Lianyungang Port Group will take over the container terminal project from China Shipping Container Lines following completion of the deal, which is subject to regulatory approval.

The container terminal marks PSA's first major foray into the Yangtze River Delta region - one of the most important economic regions in China linking many key cities, PSA said in a statement.

The terminal is poised to support the container trade originating from the hinterland of Shandong and Jiangsu, China's second and third largest economic provinces respectively, and connecting it to the shipping routes linking China with Europe, the Americas and the rest of Asia.

PSA noted that the established rail connections from Lianyungang Port to China's central and western regions, Central Asia and Eastern Europe create an integrated intermodal network.

The new terminal stands to benefit from growth in the various regions, it added.

This investment is the first collaboration of PSA with the Lianyungang Port Group.

The container terminal has a designed capacity of 2.8 million boxes and will be a premium facility to service the world's mega container vessels.

It has 1,700 metres of quay length, Super-Post Panamax quay cranes and a water-depth of 16.5 metres.

The terminal is expected to commence operations in 2014.